Global Equity Shareholder Yield
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At a Glance
Our Global Equity Shareholder Yield strategy pursues attractive total returns with an above-average level of income by investing in a diversified portfolio of global companies with strong and growing free cash flow. We pursue this through a portfolio of securities with an average cash dividend yield of 4.5%, an additional return from share buy-backs and debt reduction of 1.5%, and operating cash flow growth of at least 3%. The portfolio generally holds between 90 and 120 stocks from equity markets worldwide, with risk controls to diversify the sources of shareholder yield and reduce volatility.
The Global Equity Shareholder Yield Opportunity
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A significant portion of total returns from shareholder yield - dividends (The most stable component of returns), share repurchases and debt paydowns.
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Defensive characteristics: less-than-market volatility, low downside capture.
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Abundant income with persistent dividend growth.
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Low correlations with traditional equity styles.
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Style consistency with factor attributes that have been stable over time.
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Strong exposure to yield factor, tilt to quality.
Philosophy and Approach
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